If you're self-employed, are the sole employee of a small company, or if your corporation has 25 employees or fewer, a SEP IRA, or Simplified Employee Pension Plan, might be an attractive option. As their name suggests, SEPs are simpler to set up and administer than the alternatives.

Instead of the employees, it's the employers that make contributions to the plan. In 2016, employers are able to make a contribution of the lower of $53,000 or 25% of an employee's compensation. Though employees aren't the ones making contributions, the same withdrawal, required distribution, and rollover rules that apply to Traditional IRAs apply to these plans as well.

This material is for informational purposes only and Scottrade is not responsible for any errors or omissions. The information is subject to change without notice and should not be construed as a recommendation or investment advice. Please consult your tax or legal advisor(s) for questions concerning your personal tax or financial situation.